Iran's inflation up for third consecutive month

Ahram Online, Sunday 5 Dec 2010

Iranian inflation has hit 9.7% on increased domestic consumption and fears of energy subsidies cuts

Iran inflation
Iran's central bank governer

Iranian inflation rates have hit 9.7% for the third month in a row, on the back of a surge in local demand. Though still on the high side, the near-10 percent still falls far below the 30% inflation rate the state recorded two years earlier, the London-based Saudi daily Al Sharq Al Awsat reported today.

Complaints of rising prices have been widespread, driving the governement to impose price ceilings for a number of goods. Iran's Central Bank Governor Mahmoud Bahman attributed the increases to "psychological factors".

About $100 billion is spent by the Iranian government annually on subsidies. Growing domestic consumption has pressed the government to impose export bans on certain goods.


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